The Lean Startup
A startup may need to pivot in any stage of its life cycle. Even a successful company reaches the limit of where it could go with the current strategy. A time like that requires them to decide between pivoting of persevering. Either option poses danger in its own right.
If you decide to pivot, you run the risk of making the wrong turn, throwing away valuable work, or even losing the ground you worked hard to gain. It’s a scary thing for anyone to take on. However, it can be the only way to test a new hypothesis for the company and open up hidden opportunities.
With all these dangers facing a pivot, perseverance may seem like the safer option. It let’s you keep the current momentum, keep the team’s morel high, and saves you the embarrassment of admitting you were wrong. However, it can be a more dangerous path than a pivot. By the time you start loosing customers because of stagnation, you may have lost too much reputation to win new ones. You might have invested so much into a dead end road that there is no way to recover. Persevering despite the data is a sure fire way to fail.
This is why it’s important to have a regular meeting where you determine if you should pivot or persevere. Bring this question into light regularly so it’s not a taboo topic. Consider the real metrics of your business, and come up with a new hypothesis. Then stress test this hypothesis using the testing methodologies you previously develop. You could end up with magnificent results.